AvBuyer Magazine - July 2018

OWNERSHIP AIRCRAFT COMPARATIVE

Table C - MACRS Depreciation Schedule

2003 Learjet 60 - PRIVATE (PART 91)

Year

Rate (%)

Depreciation ($M)

Depreciation Value ($M)

Cum. Depreciation ($M)

Source: Vref

Full Retail Price - Million $2.150

1

20.0%

$0.430

$1.720

$0.430

2

32.0%

$0.688

$1.032

$1.118

3

19.2%

$0.413

$0.619

$1.531

4

11.5%

0.248

$0.372

$1.778

5

11.5%

$0.248

$0.124

$2.026

6

5.8%

$0.124

$0.000

$2.150

2003 Learjet 60 - CHARTER (PART 135)

Year

Rate (%)

Depreciation ($M)

Depreciation Value ($M)

Cum. Depreciation ($M)

Full Retail Price - Million $2.150

1

14.3%

$0.307

$1.843

$0.307

2

24.5%

$0.527

$1.316

$0.834

3

17.5%

$0.376

$0.940

$1.210

4

12.5%

$0.269

$0.672

$1.478

5

8.9%

$0.192

$0.480

$1.670

6

8.9%

$0.192

$0.288

$1.862

7

8.9%

$0.192

$0.096

$2.054

8

4.5%

$0.096

$0.000

$2.150

M

76 AVBUYERMAGAZINE– July 2018 http://www.AVBUYER.com Aircraft Index see Page 129

Source: Asset Insight (www.assetinsight.com) Aircraft Age (Years)

75%

65%

55%

45%

35%

25%

6 10 13 14 15 16 17 18 19 20

Pct of Max Mtnc Equity

15%

Pct of Avg Max Mtnc Equity vs. Aircraft Age

Bombardier Learjet 60XR

Assumed Annual Utilization: 400 Flight Hours

Average Maximum Maintenance Equity: $3,030,787

(^5 7 89 11 12)
2013 Learjet 60XR - PRIVATE (PART 91)
Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M)
Cum. Depreciation ($M)
Source: Vref
Full Retail Price - Million $4.800
1
20.0%
$0.940
$3.840
$0.960
2
32.0%
$1.536
$2.304
$2.496
3
19.2%
$0.922
$1.382
$3.418
4
11.5%
$0.553
$0.829
$3.971
5
11.5%
$0.553
$0.276
$4.524
6
5.8%
$0.276
$0.000
$4.800
2013 Learjet 60XR - CHARTER (PART 135)
Year
Rate (%)
Depreciation ($M)
Depreciation Value ($M)
Cum. Depreciation ($M)
Full Retail Price - Million $4.800
1
14.3%
$0.686
$4.114
$0.686
2
24.5%
$1.176
$2.939
$1.861
3
17.5%
$0.840
$2.099
$2.701
4
12.5%
$0.600
$1.500
$3.300
5
8.9%
$0.429
$1.071
$3.729
6
8.9%
$0.428
$0.643
$4.157
7
8.9%
$0.429
$0.214
$4.586
8
4.5%
$0.214
$0.000
$4.800
Maximum Scheduled
Maintenance Equity
Chart D(previous page) and E
(left) display the Learjet 60 and
Learjet 60XR, respectively,
depicting and projecting the
Maximum Maintenance Equity
each has available, based on age.

• The Maximum Maintenance
  Equity figure was achieved
  the day the aircraft came off
  the production line since it
  had not accumulated any
  utilization toward any
  maintenance events.


• The percent of the
  Maximum Maintenance
  Equity that an average
  aircraft will have available
  based on its age, assumes:


• Average annual utilization:
  400 Flight Hours


• All maintenance is
  completed when due

Depreciation Schedule

Aircraft that are owned and

operated by businesses are often

depreciable for income tax

purposes under the Modified

Accelerated Cost Recovery

System (MACRS). Under MACRS,

taxpayers are allowed to

accelerate the depreciation of

assets by taking a greater

percentage of the deductions

during the first few years of the

applicable recovery period.

In certain cases, aircraft may

not qualify under the MACRS

system and must be depreciated

under the less favorable

Alternative Depreciation System

(ADS) where depreciation is

based on a straight-line method,

meaning that equal deductions

are taken during each year of the

applicable recovery period. In

most cases, recovery periods

under ADS are longer than

recovery periods available under

MACRS.

There are a variety of factors

that taxpayers must consider in

determining if an aircraft may be

depreciated, and if so, the

correct depreciation method and

recovery period that should be

utilized. For example, aircraft

used in charter service (i.e. Part

135) are normally depreciated

under MACRS over a seven-year

recovery period or under ADS

Chart E - Maximum Scheduled Maintenance Equity

(Learjet 60XR)

Table D - MACRS Depreciation Schedule

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